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Periculum Advises Pet Palace Enterprises, LLC. in its Sale to Destination Pet

Periculum Capital

After successfully opening three new locations in 2020 and 2021, Pet Palace engaged Periculum in late 2022 to run a targeted sell-side process positioning the Company as a premium asset in a highly fragmented market. They have truly built a best-in-class pet resort brand that will continue to thrive under Destination Pet’s ownership.”

Sale 52
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Use of Knowledge Qualifiers for Representations and Warranties

What's Market

Market Trends: What You Need to Know As reflected in the American Bar Association's Private Target Mergers and Acquisitions Deal Points Studies: “Knowledge” is now almost always defined in private company transaction agreements. For example, in the 2021 study only 2% of the reported deals left knowledge undefined.

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Peterson Acquisitions: A Unique Approach to Buying and Selling Businesses with Devin Craig

How2Exit

rn As the industry continues to evolve, Peterson Acquisitions aims to bring more sophistication to the lower middle market and empower entrepreneurs to make informed decisions about their business ventures. 2021, March 10). rn References rn rn Peterson Acquisitions. Retrieved from [link] rn Craig, D. In How to Exit Podcast.

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Indemnity Escrows

What's Market

The 2017, 2019, and 2021 ABA studies each show that indemnity caps and indemnity baskets were lower in reported deals where representations and warranty insurance (RWI) was referenced in the deal documents, as compared with transactions without any such reference.

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Separate Escrows for Purchase Price Adjustments

What's Market

Market Trends: What You Need to Know As shown in the American Bar Association's Private Target Mergers and Acquisitions Deal Point Studies: The use of separate escrows for purchase price adjustments has been increasing on a fairly steady basis since 2007 (with a slight dip in 2021 from a 2019 high).

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Stand-Alone Indemnities

What's Market

Market Trends: What You Need to Know According to the American Bar Association's nine Private Target Mergers and Acquisitions Deal Points Studies, the use of stand-alone indemnities in reported private company M&A transactions has increased from 69% in its 2007 study to 96% in 2021. The chart below shows this trend.

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Representations & Warranty Insurance

What's Market

The most recent three of these studies (2017, 2019 and 2021) have looked at representation and warranty insurance (“RWI”) in private company M&A transactions. The percentage of transactions expressly referencing RWI increased from 29% in the 2017 study, to 52% in the 2019 study, to 65% in the 2021 study.